CBN: Financial Fraud in Nigeria Up 45%, Digital Channels Account for 70% of Losses
Financial crime soars 45% as crypto scams, Ponzi schemes and lax oversight put investors at risk.
Authorities vow stronger regulation, as EFCC, SEC and CAC push for better public protection measures.
Financial fraud in Nigeria has surged by 45%, with the Central Bank of Nigeria (CBN) attributing 70% of the resulting losses to digital platforms, including unregulated virtual asset schemes and online scams.
CBN Governor Dr. Olayemi Cardoso disclosed on Thursday in Abuja during a public lecture organized by the Economic and Financial Crimes Commission (EFCC) to mark the 2025 African Union Anti-Corruption Day. The governor, represented by the Deputy Governor for Economic Policy, Muhammad Sani Abdullahi, said the data was derived from the apex bank’s 2024 Financial Stability Report.
Cardoso noted that while digital innovation has helped expand access to financial services, it has also given rise to sophisticated forms of financial crime.
“The surge in digital innovation has enabled broader financial inclusion but also introduced complex challenges such as fraud and money laundering,” he stated.
According to the report, crypto-related transactions in Nigeria exceeded $56 billion between July 2022 and June 2023, making the country the largest digital transaction hub in Africa. However, this rapid growth in virtual asset usage has come with increased vulnerability to financial crimes.
Also speaking at the event, the Director General of the Securities and Exchange Commission (SEC), Dr Emomotimi Agama, revealed that over 30 suspected Ponzi schemes have been flagged by the Commission in the past year. He warned that the rise of such schemes, particularly those disguised as virtual investments, is threatening investor confidence and eroding public trust in capital markets.
“These crimes divert resources meant for sustainable development,” Agama said. “We are committed to strengthening regulatory frameworks and boosting investor awareness.”
He added that the SEC is working to close regulatory gaps and is intensifying surveillance on digital platforms and promoters of high-risk schemes.
The Director General of the National Orientation Agency (NOA), Malam Lanre Issa-Onilu, linked the increase in financial scams to a growing “get rich quick” mentality among Nigerians. He urged citizens to prioritise values such as integrity, diligence, and long-term planning.
“There is an urgent need to change the national mindset. Fraud thrives where greed and impatience overshadow values,” Issa-Onilu said, calling for intensified civic education campaigns across schools, communities, and media platforms.
In a related address, the Corporate Affairs Commission (CAC) stressed the need for sound corporate governance and due diligence in business registration. According to the Commission, fraudsters often exploit regulatory loopholes by setting up shell companies and using them for illicit financial operations.
The CAC warned that it is stepping up its Know Your Customer (KYC) processes to detect and deter shady corporate activity. It also pledged to work closely with financial regulators and security agencies to strengthen Nigeria’s overall economic integrity.
This latest warning from the CBN adds to growing concerns raised by agencies such as the EFCC, which recently revealed that fraudulent politicians and criminal networks are increasingly hiding stolen funds in cryptocurrencies. The EFCC has also intensified its clampdown on virtual asset scams, citing recent operational successes and arrests.
With more than 70% of fraud-related losses linked to digital transactions, Nigerian authorities are pushing for stronger regulatory controls, improved cybersecurity, and enhanced public education to prevent further damage to the economy.
